
2005 Annual Report Executive Summary
Kentucky Highlands Empowerment Zone
In order to insure an accurate assessment of the impact of the Kentucky Highlands Empowerment Zone, the KHEZ hired a third-party evaluator to determine the community changes brought about by the project during its initial 10-year schedule. The evaluator, Policy & Management Associates, Boston, MA issued their report, Evaluation of the Kentucky Highlands Empowerment Zone, in October 2005. Among the most significant accomplishments they found during the first 10-years within the Kentucky Highlands Empowerment Zone are the following: Job Creation - From designation in December 1994 to the end of the study period on January 1, 2005, total employment in the three KHEZ counties rose by 6,108, or 39.8%. Total employment in the three counties was at an all-time high of 21,455 and people are now coming into the KHEZ daily in order to work. The percentage growth compares to the employment growth rate for the Commonwealth of Kentucky for the same period of 11%. The key contributor to this job growth continues to be the KHEZ Development Venture Fund. Through December 31, 2007, the fund has approved 95 loans and investments in 56 business ventures. These enterprises have already created 3,177 jobs in the KHEZ, which is more than the ten-year goal of the Zone. The Development Venture Fund has committed over $39.2 million in area businesses, which includes more than $27 million in repaid loan funds. The Fund has leveraged more than $130 million in private investment. Education/Training - The KHEZ Strategic Plan focused on creating jobs to solve the immediate need for employment opportunities. As this condition has eased, the KHEZ has emphasized skills training so that Zone residents can improve their earning potential or enter the workforce at a higher level. With KHEZ financial and strategic leadership, new schools have been completed in Jackson and Clinton Counties at an investment of over $10 million. The Jackson County Area Technology Center was opened in 2002 and is a vocational school focusing on high school youths. All classes were filled in 2004. The Clinton County facility, the 21st Century Learning Center, held is grand opening on May 17, 2002 and includes a new public library. The focus of this center is post-secondary education with more than 70 classes being offered by Western Kentucky University, Campbellsville University and Somerset Community College in 2005. In addition to the schools, the KHEZ provided more than $1 million to set up job training centers for disabled or disadvantaged residents in Wayne and Jackson Counties and is providing $600,000 for a recreation complex for the Jackson County Schools.
Since designation, the KHEZ has invested more than $7 million in improving infrastructure in the Zone and has leveraged over $70 million from other sources. Notable accomplishments include extending water lines to over 98% of Zone residents in Wayne County, constructing the first residential natural gas system in the history of Jackson County and new water treatment plants for all three counties. It should also be noted that the first two Environment Impact Statements (EIS) ever completed by the USDA-Rural Development/Rural Utilities Service have been on KHEZ infrastructure projects. In both cases, the projects have been led by community residents.
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